Forward currency contracts
We can't predict the future of currencies, but we can insure it.
Forward currency transactions allow you to reduce the risk involved in currency transactions because you set the trading price for a specific period of time.
Insure the exchange rate so nothing changes
- You'll be able to hedge the volatility of the more liquid currencies.
- By reducing the impact of fluctuations in the exchange rate, you'll be able to adjust your company's margins more accurately.
- You can use it ahead of time to meet collection or payment commitments.
- You can carry out cross-currency transactions without going through the euro, such as the British pound with the US dollar.
- Once the risk line has been approved, you'll be able to trade online 24 hours a day from Monday to Friday.
- You'll also be able to place orders at a previously agreed price for execution when the market offers that price.
You can choose between two hedging models:
On maturity
Both parties – the customer and the Bank – agree an exchange rate for a specific date.Flexible period
The exchange rate you set will remain valid throughout the agreed period.Forex with insurance:
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Pound sterling - GBP (£) -
US dollar - USD ($) -
Canadian dollar - CAD (C$) -
Swiss franc - CHF (Fr., SFr.) -
Swedish krona - SEK (kr) -
Norwegian krone - NOK (kr) -
Danish krone - DKK (kr) -
Japanese yen - JPY (¥) -
Australian dollar - AUD ($, A$) -
Chinese yuan - CNY (¥) -
Moroccan dirham - MAD (درهم) -
Czech koruna - CZK (Kč) -
New Zealand dollar - NZD (NZ$) -
Hong Kong dollar - HKD (HK$) -
Hungarian forint - HUF (Ft) -
Icelandic krona - ISK (kr, Íkr) -
Romanian leu - RON -
Bulgarian lev - BGN (Лв) -
Mexican peso - MXN ($) -
Zloty - PLN (zł) -
Saudi riyal - SAR (ر.س, SR) -
Singapore dollar - SGD (S$) -
South African rand - ZAR (R) -
Thai baht - THB (฿) -
Turkish lira - TRY (TL) -
Qatar riyal - QAR (QR, ر.ق)
Forward currency contract terms and conditions
Conditions
- The pre-contractual information for PRIIP investment products and the key information documents are available on our website https://www.bankinter.com/banca/nav/documentos-datos-fundamentales.
- Forward currency transactions require a preliminary study and approval of the risk by the Bank.
- Forward currency transactions are formalised through a binding contract between both parties (you and the Bank) to deliver a currency for a specific amount over a specific period of time and for a previously agreed price.
- There are certain requirements you need to meet to carry out these transactions:
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- - Be in possession of the LEI (Legal Entity Identifier) currently in force
- - MIFID questionnaire in force
- - Risk line available
- The duration is from 3 days to 12 months. Exceptionally, this period can be extended.
FAQs
Do forward currency transactions require a preliminary risk study?
Yes, the Bank has to carry out a preliminary study before the contract is signed.
If I receive a collection or payment ahead of time, does the forward currency contract still apply?
Yes, as long as the forward foreign currency purchase and sale transaction has not expired.
How do I cancel a forward currency transaction if I don't receive a collection or payment?
By carrying out a spot trade of the currency. You'll be credited or debited for the difference between the agreed price and the market price.
Can I use part of a contract amount?
Yes, you can. You can also use the difference for another transaction.
Can I carry out a forward currency transaction ahead of time?
Yes, once the earliest date for you to use the currency future has arrived.
Why are there fewer tradable currencies in flexible transactions than in traditional maturity ones?
Because with less liquid currencies it's harder to find counterparties in the market.
Got a question?
The Bankinter Corporate help centre has the answer.Contact with us